This paper examines the relationship between budget deficit and external public debt in Jordan during 1992-2012. After reviewing major fiscal and monetary developments, we test for stationarity and co-integration of budget deficit and external debt. In addition, we test for the existence and direction of causality between debt and deficit. The findings of this paper provide evidence of neutrality hypotheses suggesting that there is no causality running from budget deficit to external debt and there is no causality running the other way round. Co-integration test supports the absence of long-run relationship. Empirical findings also suggest that fiscal decision makers may disregard external debt when setting budget constrains including taxes and non-interest spending. They also imply that budget constraints must rely on more important factors other than external debt when drawing fiscal policies. These factors may include good governance, tax reforms and lowering government spending on certain economic activities that have little significance on total output.
The study aimed to show the of the analysis of financial statements on the efficiency of the financial performance of the industrial sector, whose companies are listed in the financial market in Jordan. The study relied on the analysis of the financial statements for the years 2016–2021 published in the financial market for the industrial sector, and the mediating element was the Corona delinquents. The study relied on the indicators of return on assets, debt ratio, value, and the equation of market value to book value. Among the most important results of the study, several industrial enterprises lacked financial data for the research years, so they were removed from the analysis. The descriptive process test revealed: in the years after and during the Corona pandemic, industrial enterprises’ total assets climbed by 12%. Variable net income after tax has increased by 55% in postcoronavirus years in Jordanian industrial public shareholding firms, and this is reflected positively in the shift in profits. The book value of the share for Jordanian industrial public shareholding companies remains stable. The Corona pandemic problem increases asset value and net profit for industrial public shareholding enterprises. Among its most important recommendations are the necessity of having disclosure laws for unusual items, such as the Corona pandemic, and the need for industrial companies to show the impact of the Corona pandemic by announcing their financial statements.
This study aims to measure the effect of money supply on the rate of interest and gross domestic product (GDP) of the private sector in Jordan and show the effect of money supply on domestic product in order to determine the effect nature of narrow and expanded money supply of Jordanian economy. The study uses a fully modified ordinary least squares (FM-OLS) method depending on time data for the period (1990–2019). The results of the estimation show that there is a positive significant effect of narrow money supply on real GDP of the private sector. In addition, it shows that there is a negative significant effect of real interest rate on GDP of the private sector. Also, it shows that there is a statistical insignificant effect of real domestic savings on real domestic product.
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